Is Gen Digital Inc. overvalued or undervalued?

As of 28 July 2025, the valuation grade for Gen Digital Inc. has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 28, a Price to Book Value of 8.02, and an EV to EBITDA of 12.49. In comparison to peers, Gen Digital Inc. has a lower P/E ratio than Trimble, Inc. at 61.42 and a more favorable EV to EBITDA than Unity Software, Inc. at -353.55, suggesting a competitive position within its industry.
Despite the fair valuation, Gen Digital Inc. has underperformed against the S&P 500 in the short term, with a 1-week return of -2.73% compared to the index's 1.05% gain, and a 1-month return of -8.00% versus 2.33%. However, over the longer term, the company has shown resilience with a 3-year return of 35.75%, although this still lags behind the S&P 500's 70.41%. Overall, Gen Digital Inc. is fairly valued, but its recent performance relative to the benchmark raises some concerns.